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| | HB3426 Engrossed | | LRB101 09016 HLH 54109 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 9-195 as follows:
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| 6 | | (35 ILCS 200/9-195)
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| 7 | | (Text of Section WITH the changes made by P.A. 97-1161, |
| 8 | | which has been held unconstitutional) |
| 9 | | Sec. 9-195. Leasing of exempt property.
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| 10 | | (a) Except as provided in Sections 15-35, 15-55, 15-60, |
| 11 | | 15-100,
15-103, 15-160, and 15-185,
when property which is |
| 12 | | exempt from taxation is leased to another whose property
is not |
| 13 | | exempt, and the leasing of which does not make the property |
| 14 | | taxable,
the leasehold estate and the appurtenances shall be |
| 15 | | listed as the property of
the lessee thereof, or his or her |
| 16 | | assignee. Taxes on that property shall be
collected in the same |
| 17 | | manner as on property that is not exempt, and the lessee
shall |
| 18 | | be liable for those taxes. However, no tax lien shall attach to |
| 19 | | the
exempt real estate. The changes made by Public Act 90-562 |
| 20 | | and by Public Act 91-513 are declaratory of existing law
and |
| 21 | | shall not be construed as a new enactment. The changes made by |
| 22 | | Public Acts
88-221 and 88-420 that are incorporated into this |
| 23 | | Section by Public Act 88-670 are declarative of existing law |
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| | HB3426 Engrossed | - 2 - | LRB101 09016 HLH 54109 b |
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| 1 | | and are not a new enactment.
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| 2 | | (b) The provisions of this Section regarding taxation of |
| 3 | | leasehold interests
in exempt property do not apply to any |
| 4 | | leasehold interest created pursuant to
any transaction |
| 5 | | described in subsection (e) of Section 15-35, subsection (c-5)
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| 6 | | of Section 15-60, subsection (b) of Section 15-100, Section |
| 7 | | 15-103, Section 15-160, or
Section 15-185 of this Code or |
| 8 | | Section 6c of the Downstate Forest Preserve District Act.
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| 9 | | (c) If an airport authority enters into a lease with a |
| 10 | | tenant to occupy space on airport premises, and the tenant is |
| 11 | | liable for the payment of property taxes on the property, the |
| 12 | | lease shall contain the following language: |
| 13 | | "Lessee shall be liable for the payment of property |
| 14 | | taxes with respect to the leasehold interest in accordance |
| 15 | | with the terms and conditions of Section 9-195 of the |
| 16 | | Property Tax Code.". |
| 17 | | If a tenant described in this subsection (c) is liable for |
| 18 | | the payment of property taxes, and the tenant fails to make |
| 19 | | timely payment of those taxes, the tenant shall be liable for |
| 20 | | an additional penalty not to exceed the amount of taxes in |
| 21 | | arrears. |
| 22 | | (Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)
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| 23 | | (Text of Section WITHOUT the changes made by P.A. 97-1161, |
| 24 | | which has been held unconstitutional) |
| 25 | | Sec. 9-195. Leasing of exempt property.
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| 1 | | (a) Except as provided in Sections 15-35, 15-55, 15-60, |
| 2 | | 15-100,
15-103, and 15-185,
when property which is exempt from |
| 3 | | taxation is leased to another whose property
is not exempt, and |
| 4 | | the leasing of which does not make the property taxable,
the |
| 5 | | leasehold estate and the appurtenances shall be listed as the |
| 6 | | property of
the lessee thereof, or his or her assignee. Taxes |
| 7 | | on that property shall be
collected in the same manner as on |
| 8 | | property that is not exempt, and the lessee
shall be liable for |
| 9 | | those taxes. However, no tax lien shall attach to the
exempt |
| 10 | | real estate. The changes made by Public Act 90-562 and by |
| 11 | | Public Act 91-513 are declaratory of existing law
and shall not |
| 12 | | be construed as a new enactment. The changes made by Public |
| 13 | | Acts
88-221 and 88-420 that are incorporated into this Section |
| 14 | | by Public Act 88-670 are declarative of existing law and are |
| 15 | | not a new enactment.
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| 16 | | (b) The provisions of this Section regarding taxation of |
| 17 | | leasehold interests
in exempt property do not apply to any |
| 18 | | leasehold interest created pursuant to
any transaction |
| 19 | | described in subsection (e) of Section 15-35, subsection (c-5)
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| 20 | | of Section 15-60, subsection (b) of Section 15-100, Section |
| 21 | | 15-103, or
Section 15-185 of this Code or Section 6c of the |
| 22 | | Downstate Forest Preserve District Act.
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| 23 | | (c) If an airport authority enters into a lease with a |
| 24 | | tenant to occupy space on airport premises, and the tenant is |
| 25 | | liable for the payment of property taxes on the property, the |
| 26 | | lease shall contain the following language: |
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| | HB3426 Engrossed | - 4 - | LRB101 09016 HLH 54109 b |
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| 1 | | "Lessee shall be liable for the payment of property |
| 2 | | taxes with respect to the leasehold interest in accordance |
| 3 | | with the terms and conditions of Section 9-195 of the |
| 4 | | Property Tax Code.". |
| 5 | | If a tenant described in this subsection (c) is liable for |
| 6 | | the payment of property taxes, and the tenant fails to make |
| 7 | | timely payment of those taxes, the tenant shall be liable for |
| 8 | | an additional penalty not to exceed the amount of taxes in |
| 9 | | arrears. |
| 10 | | (Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)
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| 11 | | Section 99. Effective date. This Act takes effect upon |
| 12 | | becoming law.
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